When it is carefully constructed, a debt management program can really help you organize your finances and get your bills paid off faster. However, since consumers aren’t always in debt for the same reason, there are multiple solutions for individuals trying to climb out a financial hole. The ideal candidate for this kind of management / repayment program is someone who has high-interest debt and a steady enough income that will allow them to handle the debt. The reason why they need help is because they need to create a better budget for guidance, and that’s precisely what debt management companies do.
Before deciding if this is the right route for you to take, you must first ask yourself a few questions.
“Will I be able to live without a credit card?”
“Do I really need outside support to help coach me through this financial crisis?”
“Will I need to make an expensive purchase within the next year, which will require credit?”
“What exactly will my responsibilities be?”
You’ll likely be required to give up new credit – especially if you want to keep the benefits that the debt management program has negotiated on your behalf. You must prove that you are truly interested in getting out of debt, so applying for a new credit card or loan will not be of any help to you whatsoever.
Enrollment to a Debt Management Program
The enrollment process can take up to a month. Once you begin enrolling it will take some time for the negotiations to work and the repayment plan to be put into place. Unless you have enough money to pay for both the program and still make the regular payments to creditors, be prepared to get a late mark (or more) on your credit reports.
If you start getting collection calls from the creditors before everything is finalized, just inform them that you have enrolled in a debt management program and that should keep them satisfied and they will leave you alone.
If your problem is that you have too many credit cards to keep track of, then choose a company that offers consolidation solutions. For some individuals, consolidation is the best and easiest way to manage debts. The qualification requirements vary from one company to the next. Ideally, you’ll be required to owe at least $5,000 in unsecured debts in order to be approved for the management program.
Which company has a good reputation and reasonable rates? If you really are getting overwhelmed with your debts, then consider looking into CuraDebt and its solutions. There are many positive reviews about CuraDebt’s debt management program and other services.